Regulatory disruptions, unfavorable economic conditions, minimal innovation in products and distribution, and unaffordable premiums have collectively led to the insurance industry reporting only single-digit premium growth in the recently concluded financial year (FY25). To make matters worse, the outlook for the current financial year remains equally insipid.

The non-life insurance industry recorded a premium growth of just 6.2 per cent in FY25 — its lowest in the past three financial years. This compares to a 13 per cent year-on-year (YoY) growth in FY24 and 16.3 per cent YoY growth in FY23.